Your search for the right house in Albuquerque to call home has lasted several weeks. It seems that you have found the perfect house, but others are making competitive offers to purchase it. How much should you offer without overpaying?
Consider these five points:
- Stick to your budget.
Bank statements and credit card statements should be reviewed. What is your income? Where can you cut expenses or replace them with less expensive alternatives? Are there any debts that can be restructured to improve your cash flow? Once you have considered all of this, determine the maximum house payment you can comfortably afford. What is the maximum amount you can pay down without jeopardizing your emergency fund? Plan for repairs and unexpected events in your budget. Make sure you stick to your maximum down payment and monthly payment limit.
- Research the market.
It can be helpful to talk with a realtor, like Sandi Pressley and her team, who can show you what price homes are selling for in the neighborhood. Their data can show you which neighborhoods have appreciated in value over the past several years. It is also possible to find out if the rental rates in your neighborhood have increased consistently as well. Would it be realistic to expect the home’s value to appreciate enough to meet your paying price if you paid over the asking price for the house you want?
- Choose a home you can gradually turn into what you want.
The price of houses with the size and amenities you want in that neighborhood may be too high. In that case, you may want to consider a house that you can improve over time. For instance, you may find a house that has not been updated for several years at a cheaper price. Alternatively, you might find a house that allows you to finish the unfinished area over the garage to give you your dream hobby room later.
- Develop a strategy to get your offer accepted by the seller.
Be sure that your lender has provided you with a strong preapproval letter. Avoid contingencies whenever possible. Be flexible with your closing and possession dates. If you want to demonstrate to the seller that you are serious, consider increasing the earnest money.
- Plan multiple positive exit strategies in case you ever need to sell the house or move out of the area.
When the value of your home has consistently increased in the neighborhood for several years, it is likely that you can still sell it and make a profit when you are ready to move. The home could be rented to tenants and you could make a profit if rental rates are steadily rising each year even if the property market is not doing well. As a third exit strategy, you may want to speak with your mortgage lender about getting a mortgage with a clause that allows you to sell your house one day to someone who can take over your mortgage.
By looking at the past, you can make some educated guesses about the future. With a comfortable payment and a healthy emergency fund, you can enjoy living in your home and move if the need arises.
HOT PROPERTY OF THE WEEK!
4100 SKYVIEW CREST Road NW, Albuquerque, NM 87114
Price reflects $248,000 in upgrades in the past 7 months! Seller has invested in upgrading & improving this home with the best of the best. This property is exclusive and exquisite. Upgrades include: New (TPO ROOF) 50 year industrial grade 80mil TPO Carlise Syntec roof system. New (PAID SOLAR) 30 year low profile solar array not visible from ground level provides enough energy to waive off future energy bills — $4000 to $5000 annual savings. New (SWIM SPA) premier Marque aquatic training vessel for endless swimming with a number of other aquatic fitness features. New (HOT TUB) premier Marque seven seat therapeutic spa. See MLS Features & Updates List for a full list of many more updates. 3 minutes from Intel & easy access to shopping, restaurants, schools, and major thoroughfares.
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